EXPERT ADVISORS / FOREX ROBOTS
Ok, so you’ve read all the information, detail, factors, elements, hypotheses, blah blah blah. A bit too much you might be thinking? Isn’t there anything easier?
Well, surprisingly, there is. Enter the new dimension of Forex trading – the automated robot, or Expert Advisor.
Advantages of EAs
An Expert Advisor (often shortened to EA) is a piece of software that does all the hard work for you. Believe it or not, EAs are now so advanced, that you can simply load up MT4, apply the EA to any currency chart, and let it trade for you - totally automatic, totally hands-free, totally unaided. As long as you’re connected to the internet, the Forex EA will enter and exit trades for you. You don’t even need to be sitting at the computer. In fact, you could be hundreds of miles away in a different country, and it would trade for you.
Disadvantages of EAs
There is however, one main problem. As I mentioned before, the Forex market has two states. The trending state and the ranging state. Most EAs are designed for one or the other, meaning there are trending EAs and ranging EAs. If for example, the market is in a strong trend, then your trending EA will make lots of money for you, and if the market is ranging, then your ranging EA will make lots of money for you. Unfortunately though, the opposite is also true. If the market is trending, then your ranging EA will lose lots of money, and if the market is ranging, then your trending EA will lose lots of money.
The Future of EAs
Ideally, we want a Forex EA / robot that can handle both the trending and ranging markets. But wouldn’t that make things too easy? Money doesn’t grow on trees, surely? There are bad ones, there are good ones, but frankly, no Forex robot will make you money every single day, because the market is always changing. However, if you’re interested in Forex EAs, then I suggest you do your research on these automated robots, and find out what other people have experienced concerning them.
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